WORCESTER – A settlement of the class action lawsuit against the Milford Water Co., relating to an August 2009 incident in which E. coli was found in the town’s water supply, will cost the company $1.19 million.

The settlement, which was reached one day before the suit was set to head to trial, still needs official approval from a Worcester Superior Court judge, which is likely to happen at a final hearing on June 12.

As part of the settlement, the company will automatically give all customers a $25 bill credit. The settlement also includes $35,000 in payments to the 10 plaintiffs, including $5,000 to the one plaintiff who is underage, with the remaining $30,000 split among the other nine plaintiffs. The plaintiffs' legal costs will also be paid by the company.

"They’re pleased," said James O’Connor, the lead attorney for the plaintiffs. None of the plaintiffs was in court on Tuesday for the conference regarding the settlement.

The settlement also requires the company to build a new well at Clark’s Island – at no cost to customers – to improve service.

"This is an additional capital expenditure by the company that will add value to customers," O’Connor said.

The Milford Water Co. had released a statement on Monday admitting that it "lost the trust and confidence" of its customers in the incident and that it has been working for the past four a half years to "regain that trust."

"We are hopeful that this settlement will allow our affected customers to have closure from the water quality events of 2009," said Manager David Condrey.

Condrey was not available for further comment on Tuesday because he was at jury duty.

The plaintiffs alleged negligence, gross negligence, breach of contract, breach of warranties and unjust enrichment by the private utility, saying it failed to provide potable water and adequate service between Aug. 5-21, 2009.

During that period, the state Department of Environmental Protection had instated a boil-water order for the town because samples taken from the company tested for E. coli bacteria. The plaintiffs allege they suffered personal injury and sickness from the contaminated water.

The 2009 incident also led to the conviction of former water company manager Henry Papuga on tampering with water samples after it was ruled he attempted to get lifted the boil-water order the town was under. Papuga admitted to adding bleach to samples following his conviction and was sentenced to five years of probation and community service.

Contact Lindsay Corcoran at 508-634-7582 or lcorcoran@wickedlocal.com. Follow her on Twitter @LacorcMDN.